Stocks continue to fall in unison with the Baltic Dry

Tokyo: Mitsui O.S.K. Lines Ltd., Japan's largest operator of iron-ore ships, dropped in Tokyo trading along with domestic rivals, as rates for carrying commodities had their biggest slump on record.

The shipping line declined 6 percent to 889 yen as of the close of trading in Tokyo today. Nippon Yusen K.K., Japan's biggest shipping line by sales, dropped 6.6 percent and Kawasaki Kisen Kaisha Ltd., the third-largest, slid 6.3 percent.

The Baltic Dry Index, a measure of commodity-shipping rates, dropped 10 percent on September 26, as Chinese steelmakers stopped buying iron-ore from Brazil's Cia. Vale do Rio Doce as part of a pricing standoff. The Baltic capesize index has tumbled about 80 percent since a peak in June.

Chinese steelmakers, the world's biggest iron-ore consumers, won't buy from Vale in the ''short term,'' the China Iron and Steel Association said September 26. Vale wants to raise prices for Asian mills to match what European clients are paying. The association says that's ''unreasonable'' because of slowing steel demand from automakers and builders. [29/8/09]

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